Three Arrows Capital has filed for Chapter 15 bankruptcy in New York, days after the alleged liquidation of a crypto hedge fund began in the British Virgin Islands.
The liquidation, and subsequent bankruptcy filing, is a trace of a electronic money The market crash has engulfed lenders, exchanges and investors. Popular crypto tokens like bitcoin and ether have fallen about 70% since posting their all-time highs during last year’s bull run.
Teneo Consulting Company was appointed as the general liquidator of hedge fundwith executives Russell Crumpler and Christopher Farmer appointed to oversee the liquidation.
Also this week, the Monetary Authority of Singapore criticize Three Arrows for providing misinformation and violating content below regulatory thresholds. The fund was first managed in Singapore before moving to the BVI in September.
Singapore’s Financial Services Regulatory Authority added that it was “assessing whether there were further violations of MAS’ Three Arrows Capital regulations”.
According to court documents seen by the Financial Times, crypto options and futures exchange Deribit declared Three Arrows defaulted on $80 million, as financial troubles hit the fund. speculative.
$80 million includes 1,300 bitcoin and 15,000 ether, valued at around $42 million. The loan also includes a negative $37.1 million in assets.
Deribit has said that “the company is or is likely to be unable to pay its debts as they come due and is therefore insolvent”.
In papers filed with the New York federal bankruptcy court, Three Arrows said “[b]file a petition to initiate this chapter 15 lawsuit, foreign representatives [Teneo] seek to sustain the active efforts of individual creditors to seize assets and preserve the status quo and provide opportunities for foreign representation [to] stabilize the debtor’s estate, preserve the debtor’s assets, conduct a thorough investigation
debtor, claim against his estate and property, including cause for action”.
Cryptocurrency financial services groups BlockFi and Genesis also liquidated some of the Three Arrows positions last month after being unable to meet margin calls.